GBG - Gindalbie Metals

[YNKWRTNC]

For anyone interested in GBG or curious as to whether to invest, go back through this forum and read up on what 'DJ_420' has posted.
Speaks with sense and fact.

Much of the buying (13 million shares traded) was done last Thursday as a leak about the BFS obviously got out. Today investors knew there was a ride to get on (SP peaked at $1.98) and now day traders and some GBG holders waiting for the BFS have sold for profit.
Long term, this stock is a must for any portfolio and is the way to go.
If you are chosing this stock short term (less than a year), you'd be crazy to sell before the Lodestone drill report comes out (will be between now and Christmas). The resource amount GBG currently has could increase by a huge amount and as DJ_420 has eluded to; the infratruture set up for Karara will be already there for Lodestone. A huge advantage.
Ansteel are the financial backing for setting up the infrastructure for Karara and they'll obviously benefit from that - a constant, reliable, iron ore source. With their investment in Gindalbie as well it's 'win, win' for them.
But Lodestone could the jewel in the crown for GBG. With less capital raising needed it may bring in some huge profits.

Buy and hold on GBG.

 

[jonojpsg]

GBG has 448m shares on issue @$2 gives a capital value of $900m. Given that the NPV in the release today was $2.3b, I would say there is a pretty clear case for improved SP

 

[tonza]

Solid day for GBG today. The next few months will hopefully be even more exciting. Dont forget about GBG and ROY's Warriedar joint venture project either. Drilling is scheduled to begin next week.

http://www.wabusinessnews.com.au/en-story/1/56336/Royal-Resources-sells-gold-project-stake-bullish-on-uranium

 

[dj_420]

great day for GBG, not a huge increase in the sp BUT we did have a 10% plus increase on friday also.

BFS has indicated that GBG are now stepping forward from explorer to producer status, next things here would be to begin development. as said in BFS ansteel will be putting up 75% of capital for magnetite development so GBG will need an approx 400 million from cap raising.

karara still has substantial additional tonnage underneath current resource envelope and is open at depth. once work begins on karara we will start to see resource upgrades. as mentioned before the current resource is viable to start operations, further drilling will delineate additional resources.

lodestone could also prove up to be a massive resource, this is similar deposit to karara and shows mineralisation from surface.

best thing about hematite DSO operation starting will mean some cash flow to help with capital costs for magnetite operation. i would like to see these profits be put towards magnetite operation as it would mean less dilution needed for cap raisings.

all in all good day for holders

 

[Frankhalo]

Gindalbie close to signing $1.8 bn deal with China
Barry FitzGerald
September 4, 2007


PERTH-BASED Gindalbie Metals and its Chinese joint-venture partner, Anshan Iron & Steel (AnSteel), are close to committing to the $1.8 billion development of their Karara magnetite and Mungada hematite projects in Western Australia's mid-west.
An agreement covering the twin iron ore projects could be signed this week as part of the theme of closer economic ties with China expected to emerge at the Asia-Pacific Economic Co-operation Forum summit in Sydney.

Sign away.

Regards

Frank

 

[zt3000]

JP Morgan Chase Increase its Substantial holding to over 6% .. good signs. IMO this could be another MMX ... only time will tell ...

 

[Bush Trader]

This article may be of interest to those of you whom have not seen it.


Cheers

BT

Iron Ore Developer Gindalbie A Spec Buy, Says Intersuisse
FN Arena News - September 04 2007
By Chris Shaw

It has been a busy few days for junior iron ore play Gindalbie Metals (GBG) as the company has announced the results of feasibility studies on two projects and a placement with Anshan Iron & Steel Group (Ansteel) that makes the Chinese company the group’s second largest shareholder.
Intersuisse, which rates the stock as a Speculative Buy, expects both the Mungada hematite project and the Karara magnetite project will generate high internal rates of return and with the company having Ansteel as a 50/50 joint venture partner is positive on the chances of the company with respect to successfully developing both projects.
The Mungada project will be first cab off the rank and is expected to ship its first ore in the first quarter of 2009, the project estimated to produce three million tonnes of ore annually all of which will be taken by Ansteel.
The broker estimates a net present value on the project of $79.6m, while anticipating it will generate around $184m in cash flows over its scheduled six year life, meaning some meaningful cash flows as the company builds the larger Karara project. There is scope for the project life to be extended through exploration success.
Karara has an estimated project cost of around $1.6 billion and is forecast to have initial production of eight million tonnes annually, half of which will go directly to Ansteel and the other half to be converted into blast furnace pellets before being sold to that company.

Production here is tipped to commence in the first quarter of 2010 with sufficient ore for a mine life of at least 25 years, the broker estimating the project should generate an annual after-tax cash surplus of around $360m once it hits full production.
Aside from the opportunity to secure material Ansteel is clearly confident in the company’s outlook as it recently subscribed for $39m in new shares, albeit at a significant discount to the current market price.
Following the placement Gindalbie now has $60 million in cash on hand, which will help with the developments costs of Mungada.
Shares in Gindalbie have been on a tear of late, the stock having risen from 80c in the middle of August to more than double that now and over the past 12 months the shares have ranged between 40c-$1.98.
Currently no brokers in the FNArena database cover the company, but with a market capitalisation of almost $800m at current prices it would seem likely the stock will begin to attract more attention.
Shares in Gindalbie today have stabilised after the recent strong gains and as at 2.00pm were trading down 2.5% at $1.795.

 

[Frankhalo]

Next 2 days very important, good read below. Its all about dotted lines being signed now, the kicker is why take out a 12% stake in GBG if you were not going to sign up. Were in boys and girls, I have no doubts.

Regards

Frank

Gindalbie set to tie knot with Chinese
Kevin Andrusiak | September 05, 2007
IRON ore hopeful Gindalbie Metals could formalise funding arrangements with joint venture partner Anshan Iron & Steel for its $1.8 billion mid-west West Australian projects by tomorrow.
The move would coincide with the arrival of the big Chinese contingent at APEC.
Gindalbie chairman George Jones and AnSteel president Zhang Xiaogang are expected to meet in a Sydney tomorrow to thrash out the next phase of development for Gindalbie's Mungada and Karara projects, which are tipped to be in production in early 2009 and early 2010 respectively.
It would represent the continued strengthening of ties between Chinese and Australian miners riding the resources boom, which has seen previously uneconomic mineral deposits suddenly become very lucrative.
AnSteel had always maintained it would underwrite the debt and equity financing of the project and yesterday it paid $39 million for 65 million Gindalbie shares, at an issue price of 60c each, which moved AnSteel to second place on the Gindalbie register with a 12.78 per cent stake.
Malaysian industrial firm Melewar is the biggest stakeholder with a 13 per cent stake, having bought into Gindalbie when the shares were 12c.
Mr Jones said any formalising of arrangements was merely speculation, but both Gindalbie and AnSteel were hopeful of moving the projects into production.
"We've been working with AnSteel now for about 18 months on these projects," the Gindalbie chairman said.
"Right from the start we've expected a serious outcome.
"On the numbers released for both the hematite and magnetite this week, we are more than hopeful of a good result."
This week Gindalbie delivered a bankable feasibility study into the Karara magnetite project, which proposes a 20 million tonne a year operation for 8 million tonnes of magnetite concentrate. At the same time it said it was in confidential third-party discussions over an incomplete proposal to the company.
Gindalbie shares moved more than 19 per cent higher in intra-day trading after the company came out of a trading halt.
There has always been plenty of market noise about possible tie-ups of mid-west iron ore hopefuls, which are of a smaller scale compared with their Pilbara cousins. But the confidential discussions are taken to mean the completion of the AnSteel financing arrangements tomorrow.
Gindalbie is expected to produce 3 million tonnes of high-grade hematite at Mungada, 225km from the port of Geraldton, but has the potential to lift that figure through adding more resources. That product will be moved to port via road and rail.
But big question marks remain over the shape of rail infrastructure in the mid-west, which is understood to be much to the chagrin of Chinese interests that have heavily backed the opening up of the mid-west landscape.
The topic of mid-west infrastructure would have been on the agenda during the visit of Chinese President Hu Jintao to Western Australia ahead of the APEC conference.
BBY mining analyst John Veldhuizen said it was clear that AnSteel was determined to see Gindalbie's projects moved to fruition.
"The resource base could support a big increase in production," Mr Veldhuizen said.
"But clearly, infrastructure remains a big issue and is one of the major constraints. As yet, there remains no clear picture and the Chinese will be pushing hard on that from the state Government. That's what they're there for."
Yilgarn Infrastructure, which is backed financially by China's Exim Bank, wants to build and manage its own rail network through the region.

 

[bigdog]

GBG - Gindalbie Metals is Company Trading Status: Pre-Open

There have been no ASX announcement yet today

Any clues on what is about to happen?

 

[zt3000]

Stayed in Pre-Open this morning? Maybe it has something to do with the 3rd party they mentioned in previous announcements. Wait n see.

 

[zt3000]

GBG - Gindalbie Metals is Company Trading Status: Pre-Open

There have been no ASX announcement yet today

Any clues on what is about to happen?

Come on everybody now ... "Take Over clap clap clap Take Over clap clap clap"

LoL ... wishfull thinking i know hahaha

 

[s3081402]

It in trading halt. Maybe announcement coming up soon. Hopefully some signature being sign. Cheers.

 

[bigdog]

ASX ann
GBG 10:22 AM Trading Halt
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00756337

Pre-open until at least Friday pending announcement by GBG

 

[adobee]

I would expect we can see some statement on the future business and expansion with ansteel ??? But I am guessing.. Everyone holding should buy more if the announcement is good, lets break $2.00 !!!!!!!!

 

[s3081402]

I would expect we can see some statement on the future business and expansion with ansteel ??? But I am guessing.. Everyone holding should buy more if the announcement is good, lets break $2.00 !!!!!!!!

I would love to buy some more yesterday bro. But no money that the problem. It will break $2 very soon.

 

[dj_420]

i would expect this to be Ansteel signing off on the BFS, which means project has the green light, Ansteel fund 75% of development capital costs and projects can begin!

its to early for lodestone results (unless they have encountered 600 - 700 metres of 40% + drill hits, lol)

OR could it be this mysterious third party coming to light? ROY is also in a trading halt, but has been for several days. one would expect if it were to do with them they would have both been placed in a halt at the same time.

any ideas anybody??

 

[Frankhalo]

Yep, its the signing IMO, BFS stands for little unless you commit. The kicker is why take up 12% stake in GBG and seat on the board and not sign up. Its a done deal.

 

[Frankhalo]

Rail line sorted:

CHINESE president Hu Jintao's visit to Australia has been marked by a flurry of Sino-Australian business deals worth billions of dollars.

Port and railway builder Yilgarn Infrastructure, the mining giant Rio Tinto and Shell all completed deals yesterday.

President Hu - in Australia for the APEC leaders' summit in Sydney - arrived in Canberra last night after spending 24 hours in Western Australia, a major source of raw materials for China's booming economy.

Yilgarn yesterday sealed a landmark $750 million investment deal with five Chinese companies for the construction of its proposed $3 billion port facility at Geraldton, WA.

Yilgarn's deal with Sinosteel Corp, China Railway Engineering Corp, China Communication and Construction Company, China Railway Materials Commercial Corp and Anshan Iron and Steel Group Corp is the first time such a large group of Chinese state-owned enterprises have invested in an Australian company.

Yilgarn chairman John Saunders said the agreement, plus a debt finance commitment secured from China's Exim Bank, put his soon-to-be-listed company on the best financial footing.

 

[gilbertw]

DJ-420... just a small correction to your earlier post:

ROY entered a trading halt on 03.09.2007
GBG entered a trading halt on 05.09.2007

ROY has only been in trading halt for 3 days and is scheduled to reccommence trading 06.09.2007

thanks

 

[dj_420]

DJ-420... just a small correction to your earlier post:

ROY entered a trading halt on 03.09.2007
GBG entered a trading halt on 05.09.2007

ROY has only been in trading halt for 3 days and is scheduled to reccommence trading 06.09.2007

thanks

cheers

i would take that as trading halt is not related then, if it were a deal or such between the two companies they would have been placed in halt at the same time.

best guess now ansteel signing away on BFS